Fraud Risk Assessments & Prevention

Studies show that about one person in three is genuinely honest, and will not try to commit fraud. Another one in three is genuinely dishonest, and is seeking means to take advantage of others. The actions of the other depend on need or greed, rationalization, integrity and opportunity. Removing opportunity is a key to fraud prevention.

Whether for public or non-public companies, professional standards require assessment of fraud exposures. A company must first understand its fraud risks in order to effectively design and implement antifraud programs and controls to mitigate risk. Our expertise includes developing policy and national training for a Big Four professional services in the areas of fraud risk assessment, antifraud programs and controls.

We can provide guidance on best practices in performing a fraud risk assessment and can assist management in facilitating this throughout the organization. We can help you design systems to help deter and detect fraud. We can also provide reviews of your current system. A Fraud Risk Assessment is custom designed to meet the needs of your organization. In a fraud risk assessment, our team reviews your system, seeking the gaps through which dishonest people can take advantage.

Economic Damages Computations

It’s not enough to know you have suffered a loss, whether by fraud or otherwise. To recover in court or other proceedings, you must provide defensible estimates of damages. Our team is trained and experienced in the computation and expression of professional opinions on damages. We have computed damages in hundreds of matters, including court cases, arbitrations and mediations.

Business Valuations

Our staff is experienced, credentialed, and qualified to perform business valuations as well as complex data and statistical analyses. We perform valuations for use in general corporate planning, including planning for estate and succession issues. We also perform valuations for financial reporting and regulatory purposes.

In providing business valuation services in litigation settings, our work is held to a high degree of scrutiny. We exercise the same degree of care for non-litigation business valuations and other strategic consulting services. All services we provide are given the same due care used as that used when performing forensic accounting services. The end result is confidence in the depth and quality of the services you receive, and how these services can facilitate your business decisions.

Business valuation techniques and requirements are continuously evolving as regulatory agencies better understand the field. Our staff stays up to date with business valuation requirements and trends through involvement in the Financial Consulting Group, the Institute of Business Appraisers, and the American Institute of Certified Public Accountants.

Due Diligence

Due diligence can be the most important part of purchasing a business. As credentialed and experienced business valuators, we know what drives the value of business. We can review valuations prepared by others, focusing on reasonableness of methodology and assumptions.

As experienced fraud examiners, we also understand how value drivers can be manipulated. The combination of our skills and experience in business valuation and fraud examination can assist you in performing the due diligence necessary to make business decisions.

Financial Distress

Our team is trained and experienced in recognizing signals of financial distress. We are trained and experienced in matters of bankruptcy and insolvency. As experienced fraud examiners, we also understand how fraud can be manifested in financial distress, and how financial distress can result in fraud.

Statistical Analysis

Our ability to find the numbers is complemented by our ability to analyze them. We can help you and others understand the patterns and trends that describe your data. Knowing that a picture is worth a thousand words, we rely on presenting powerful exhibits to tell the story.

Compliance with Standards

The work of professionals is often based on opinions and assumptions. The fields of accounting, business valuation and fraud examination have numerous professional standards as well. Interpretation of these standards and understanding compliance with them can be a complex task. Noncompliance with standards can have serious implications for users of reports. A noncompliant report often lacks the reliability needed for trust to be placed in the information it contains. If a report is backed up with noncompliant work or work product, or based on faulty assumptions, reliability is compromised as well. Our team has reviewed hundreds of reports and sets of underlying documentation, prepared by companies and by other experts, for compliance with applicable standards and for plausibility of assumptions.